EU Deforestation Regulation (EUDR): A pragmatic & data-driven approach

According to a survey by the World Resources Institute, 3.7 million hectares of tropical primary forests were lost in 2023, which is equal to losing nearly 10 soccer fields of forest every minute. This massive loss affects not only the people who depend on these forests but also significantly affects the overall ecosystem and biodiversity and substantially impacts CO2 emissions.

To mitigate deforestation and forest degradation globally, which encompasses curtailing biodiversity loss and carbon dioxide emissions while safeguarding the habitats of indigenous populations, the European Union came up with the European Union Deforestation Regulation (EUDR). The EUDR requires that commodities marketed within or exported from the EU not be associated with deforestation. Seven commodities have been chosen based on an impact assessment identifying them as the main drivers of deforestation due to agricultural expansion: cattle, cocoa, coffee, palm oil, rubber, soy, and wood. It is important to note that all “relevant products,” i.e., products that contain, have been fed with, or have been made using the “relevant commodities”, are covered by the EUDR.

With thousands of suppliers in their supply chain, many companies may feel overwhelmed if they don’t adopt the right strategy for managing EUDR compliance. A risk-based approach that prioritizes key issues combined with the latest technology is the best solution to enhance efficiency while complying with legal requirements.

1. Collect the required data and group suppliers by risk level
2. Trigger risk assessments and due diligence statement
3. Complete and publish the annual report

Let’s take the first step together!

Starting the journey with us will allow you to define and execute a pragmatic strategy to meet legal requirements and implement a risk-based approach powered by technology. Should you have internal resource constraints or budget issues, we can use our near-shore centers as an extension of your team to perform the administrative tasks cost-effectively. Your employees can then focus on more strategic activities.